Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2498 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to energy; establishing a geothermal heat exchange system rebate program;
3	3	1.3 appropriating money; proposing coding for new law in Minnesota Statutes, chapter
4	4	1.4 216C.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. [216C.49] GEOTHERMAL HEAT EXCHANGE SYSTEM REBATE
7	7	1.7PROGRAM.
8	8	1.8 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
9	9	1.9the meanings given.
10	10	1.10 (b) "Eligible applicant" means a person, business, nonprofit, government entity, federally
11	11	1.11recognized Tribe in Minnesota, or religious institution that provides evidence to the
12	12	1.12commissioner's satisfaction demonstrating the applicant has received or has applied for a
13	13	1.13geothermal heat exchange system rebate available from the United States Department of
14	14	1.14Treasury under the Inflation Reduction Act of 2022, Public Law 117-189, for a commercial
15	15	1.15or multifamily building located in Minnesota.
16	16	1.16 (c) "Geothermal heat exchange system" means a heating or cooling exchange device
17	17	1.17composed of a mechanism that collects or rejects heat from or to the underground.
18	18	1.18 Subd. 2.Establishment.A geothermal heat exchange system rebate program is
19	19	1.19established in the department to provide financial assistance to eligible applicants that install
20	20	1.20geothermal heat exchange technology in the applicant's building.
21	21	1Section 1.
22	22	REVISOR RSI/LJ 25-0250202/19/25
23	23	State of Minnesota
24	24	This Document can be made available
25	25	in alternative formats upon request
26	26	HOUSE OF REPRESENTATIVES
27	27	H. F. No. 2498
28	28	NINETY-FOURTH SESSION
29	29	Authored by Hemmingsen-Jaeger, Kraft, Hollins, Jones, Acomb and others03/17/2025
30	30	The bill was read for the first time and referred to the Committee on Energy Finance and Policy 2.1 Subd. 3.Application.(a) An application for a rebate under this section must be made
31	31	2.2to the commissioner on a form developed by the commissioner. The application must be
32	32	2.3accompanied by documentation, as required by the commissioner, demonstrating:
33	33	2.4 (1) the applicant is an eligible applicant;
34	34	2.5 (2) the applicant owns the Minnesota building in which the geothermal heat exchange
35	35	2.6system is to be installed;
36	36	2.7 (3) an energy audit of the building in which the geothermal heat exchange system is to
37	37	2.8be installed was conducted by a person with a building analyst technician certification issued
38	38	2.9by the Building Performance Institute, Inc., or an equivalent certification, as determined by
39	39	2.10the commissioner, within the 18 months preceding the application date;
40	40	2.11 (4) the applicant installed a geothermal heat exchange system with the capacity
41	41	2.12recommended by the auditor or contractor, and the heat pump was installed by a contractor
42	42	2.13with sufficient training and experience in installing heat pumps, as determined by the
43	43	2.14commissioner; and
44	44	2.15 (5) the total cost to install the geothermal heat exchange system in the applicant's building
45	45	2.16and the associated geothermal loop installed and located outside of the building.
46	46	2.17 (b) The commissioner must develop administrative procedures governing the application
47	47	2.18and rebate award processes.
48	48	2.19 (c) The commissioner may modify program requirements under this section when
49	49	2.20necessary to align with comparable federal programs administered by the department under
50	50	2.21the Inflation Reduction Act of 2022, Public Law 117-189.
51	51	2.22 Subd. 4.Rebate amount.A rebate awarded under this section must not exceed the lesser
52	52	2.23of:
53	53	2.24 (1) 15 percent of geothermal heat exchange system costs, not to exceed $100,000 for a
54	54	2.25single project; or
55	55	2.26 (2) the total cost to purchase and install the heat exchange system in an eligible applicant's
56	56	2.27building, net of financial support received for the system from other federal, state, or utility
57	57	2.28programs.
58	58	2.29 Subd. 5.Prioritization.When evaluating applications under this section, the
59	59	2.30commissioner must give priority to applications for multifamily housing or commercial
60	60	2.31buildings that:
61	61	2.32 (1) are owned by a nonprofit or government entity; and
62	62	2Section 1.
63	63	REVISOR RSI/LJ 25-0250202/19/25 3.1 (2) meet the definition of low-income rental property under section 273.128.
64	64	3.2 Subd. 6.Account established.(a) A geothermal heat exchange system rebate account
65	65	3.3is established as a separate account in the special revenue fund in the state treasury. The
66	66	3.4commissioner must credit appropriations and transfers to the account. Earnings, including
67	67	3.5interest, dividends, and any other earnings arising from assets of the account, must be
68	68	3.6credited to the account. Money remaining in the account at the end of a fiscal year does not
69	69	3.7cancel and remains in the account until expended. The commissioner must manage the
70	70	3.8account.
71	71	3.9 (b) Money in the account is appropriated to the commissioner to award rebates under
72	72	3.10this section and to reimburse the reasonable costs incurred by the department to administer
73	73	3.11this section. Money remaining in the account on January 1, 2033, cancels to the renewable
74	74	3.12development account.
75	75	3.13 Sec. 2. APPROPRIATIONS.
76	76	3.14 (a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
77	77	3.15$....... in fiscal year 2026 is appropriated from the renewable development account under
78	78	3.16Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce for
79	79	3.17the geothermal heat exchange system rebate program under Minnesota Statutes, section
80	80	3.18216C.49. A rebate awarded with money appropriated under this paragraph must be awarded
81	81	3.19only to projects that are located within the electric service area of the public utility subject
82	82	3.20to Minnesota Statutes, section 116C.779.
83	83	3.21 (b) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner
84	84	3.22of commerce for the geothermal heat exchange system rebate program under Minnesota
85	85	3.23Statutes, section 216C.49. A rebate awarded with money appropriated under this paragraph
86	86	3.24must be awarded only to projects that are located outside the electric service area of the
87	87	3.25public utility subject to Minnesota Statutes, section 116C.779.
88	88	3Sec. 2.
89	89	REVISOR RSI/LJ 25-0250202/19/25